I need to withdraw my 401 K funds but have been told I can't do it because I am still working for the company. My total is fully vested. I don't qualify for a hardship withdrawel & already have 2 loans on it. Is there anything I can do?

If I am terminated beceause my job has been outsourced, do I have to pay the 10% penalty for cashing my 401k? I am 47 years old and fully vested.:mad:

Quote:

---

Originally Posted by space207

I need to withdraw my 401 K funds but have been told I can't do it because I am still working for the company. My total is fully vested. I don't qualify for a hardship withdrawel & already have 2 loans on it. Is there anything I can do?

---

Not much. You should be able to withdraw the money, but you will pay a 10% penalty as well as be liable for taxes on the withdrawn amount.

Quote:

---

Originally Posted by longfellows

If I am terminated beceause my job has been outsourced, do I have to pay the 10% penalty for cashing my 401k? I am 47 years old and fully vested.:mad:

---

Yes. Any withdrawal not qualified as a hardship (and termination doesn't qualify), is subject to a 10% penalty. Plus taxes are owed.

Quote:

---

Originally Posted by space207

I need to withdraw my 401 K funds but have been told I can't do it because I am still working for the company. My total is fully vested. I don't qualify for a hardship withdrawel & already have 2 loans on it. Is there anything I can do?

---

You may have to repay the loans first or there maybe a period that must be met (12 months) before you can withdraw from this account or make any changes as a result of taking out the loans. You may have to wait.

Quote:

---

Originally Posted by longfellows

If I am terminated beceause my job has been outsourced, do I have to pay the 10% penalty for cashing my 401k? I am 47 years old and fully vested.:mad:

---

Yes and any taxes on the amount. A roll over is a better option. See your plan administrator.